Life Insurance is an agreement which involves three parties an insurer; an insured and a beneficiary. It is a contract in which the insurer mostly an insurance company provides financial protection to the insured in return of payment of periodic fees called premium. In case the insured who is the policyholder is no more, the insurance company pays a lump sum amount to the beneficiary who is a person nominated by the policyholder. Life insurance is useful to provide one's family with financial security in case circumstance puts one into a situation where he or she is not able to earn for self or family such as in case of serious illnesses or early demise. It helps keep one's family financially protected even in their absence. A life insurance policy also helps encourage a disciplined habit of saving which provides you financial stability in the long run. Contrary to popular belief, today life insurance is not an investment that we perceive only in the event of the death of the subscriber. Life Insurance is much more than a financial instrument that covers risk; it is a great saving and investment instrument as well. The life insurance is a savings product that offers very attractive tax benefits for the insured. It allows one to grow a capital as one receives investment premiums back with interest at the end of the contract. Alternatively one may bequeath a lump sum amount to the chosen beneficiaries in the event of death. There are some lucrative offerings in the market such as the HDFC Life Click 2 Protect Life plan. The Click 2 Protect Life is an intelligent life insurance plan that provides much more than just life insurance.
Benefits of Life Insurance
Life insurance can help a person and his family to meet various financial objectives and goals. Other than providing financial protection for dependents in the event of death, other financial objectives and goals that can be taken care of using a Life Insurance policy can be regular income after retirement, buying a house, marriage or education of children and much more. The primary benefit of a Life insurance policy is security. Life can be full of uncertainties and in case of an unfortunate event like death, the family and dependents of the primary earner of the family may have to face financial hardships and troubles. Investing in a life insurance policy from an early age can act as a protective shield in the event of such a possible event. The life insurance provider is obliged to pay the sum insured to the nominee or the beneficiary as a result; one's family is protected even if the policyholder is not around. Insurance can also act as a long-term systematic savings or investment plan to create a corpus that can be then used in the future as required. There are various types of life insurance policies available in the market to suit individual needs and demands and needs of the policy buyer.
How life insurance works
For many Life insurance is first and foremost a savings product. Depending upon one’s needs and requirements the policy can be kept enforced by paying regular premiums for a long or for a shorter duration of time, it all depends on one’s needs. At the end of the policy term, the amount collected will be returned to the insured or the beneficiary previously designated by the insured with interest. Life insurance can provide one with freedom and peace of mind. Today to suit various needs there different types of life insurance plan available in the market. One may choose from Unit Linked Insurance Plan (ULIP), Endowment Plan, Money Back Plan, Whole Life Insurance, Retirement Plan, Child Plan, Term Life Insurance Plan and others. Life insurance is an investment that allows one to build up savings and capital. One can opt for a Life insurance policy at any age. It is always advisable to start young as the earlier one starts, the longer he or she contributes and the more attractive the returns are.
Life Insurance for a growing family
Whatever may be one’s requirement or financial goal be, there is a life insurance policy available to achieve the same. Also one of the most trusted names in the market HDFC Life has introduced its Click 2 Protect Life plan. The plan provide life insurance plus it provides the ultimate flexibility with three different options of life cover with Life Protect Option, life cover along with critical illness cover with Life and CI Rebalance Option and also option of regular income with the Income Plus Option. There are also additional features such as Return of Premium option, waiver of premium in case of critical illness (WOP CI option) and additional sum in case of accidental death (ADB option). Buying a life insurance policy is a necessity of our times. A growing family means growing responsibilities and expenses. Today with plans such as Click 2 Protect Life by HDFC life, Life Insurance just doesn’t only mean its name but it is much more than that. Be is security for self and family, regular income in case of any untowardly event that stops one from working, funds for medical emergencies, for savings and investment purposes and for much more a Life Insurance policy such as Click 2 Protect Life by HDFC life is the answer.